Seidman Investment Portfolio Organization

 

Company: CPFL Energia S.A.
Analyst: Julie VerHage
Sector: Energy (NYSE:CPL)

CPFL Energia SA, or CPL is a Brazilian based energy company traded on NYSE. A value company, CPL along with its subsidiaries has leading market share of energy production and distribution within Brazil at 13.3%. It is the largest private group in the Brazilian electric sector, and has been repeatedly hailed for its achievements in management, quality, and operating efficiency.



IPO is currently holding CPL for several reasons. First, desiring to become a value-type company it has shifted 100% of net profits to dividends. That provides a yield of 7.60%, or $1.96 per share, which is significant. Secondly, CPL has paved the way for growth as it invests in hydro-electricity and other forms of alternative energy solutions. As the energy sector has been hit with volatile oil prices, alternative energy companies will become more prominent within this sector, especially if crude oil continues its hasty rise. This company supports our desire to dabble in the alternative energy sector.

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Page last modified March 11, 2012